Definition
CRD (Central Registration Depository)
The Central Registration Depository (CRD) is the online registration and licensing system operated by FINRA in cooperation with the North American Securities Administrators Association (NASAA). It is the central repository for Form U4 and Form U5 filings, disciplinary history, employment records, and qualification exam history for every registered representative and broker-dealer in the United States. Each registered individual is identified by a unique CRD number assigned at first U4 filing.
When a broker-dealer hires a new registered representative, the firm submits a Form U4 electronically through the CRD. The CRD assigns the individual a permanent CRD number, notifies the relevant state regulators, and opens the FINRA testing window so qualification exams can be scheduled. The same record then powers BrokerCheck, the public-facing site that investors and prospective employers use to look up disciplinary and employment history.
Candidates frequently confuse the CRD (the regulator-facing system, used for broker-dealer and registered-representative records) with BrokerCheck (the public-facing site that surfaces a subset of CRD data). They also confuse the CRD with the IARD (Investment Adviser Registration Depository), which is the companion system that handles Form ADV filings for investment advisers and IARs. The two systems are operated together but cover different registration paths.
How is CRD (Central Registration Depository) tested on the exam?
- Identifying the CRD as the central system for broker-dealer and registered-representative registration
- Knowing that FINRA operates the CRD in cooperation with NASAA
- Recognizing that BrokerCheck is the public-facing version of CRD records (brokercheck.finra.org)
- Distinguishing the CRD (broker-dealer side) from the IARD (investment adviser side)
- Understanding the path: firm submits Form U4 to CRD, state regulators are notified, testing window opens for qualification exams
Regulatory limits
Regulatory Limits
| Description | Limit | Notes |
|---|---|---|
| CRD operator | FINRA, in cooperation with NASAA | NASAA is the North American Securities Administrators Association, representing state securities regulators |
| Public-facing version of CRD data | BrokerCheck (brokercheck.finra.org) | Free, public site that surfaces employment, exam, and disclosure history from CRD |
| Companion system for investment advisers | IARD (Investment Adviser Registration Depository) | Handles Form ADV filings for SEC-registered and state-registered advisers and their IARs |
CRD = the regulator-facing registration depository. FINRA + NASAA run it. BrokerCheck = the public-facing front door to a slice of CRD data. IARD = the adviser-side companion system for Form ADV.
Practice questions
Test your understanding with the questions below. Pick an answer to reveal the explanation.
Which of the following statements best describes the Central Registration Depository (CRD) and its relationship to BrokerCheck?
C is correct. The CRD is the back-end registration and licensing system operated by FINRA in cooperation with NASAA. It holds Form U4 and U5 filings, disciplinary history, employment records, and qualification exam history. BrokerCheck (brokercheck.finra.org) is the public-facing site that surfaces a subset of those records so that investors and prospective employers can vet broker-dealer representatives.
A is incorrect because it reverses the roles. the CRD is the back-end system and BrokerCheck is the public lookup. B is incorrect because the CRD is operated by FINRA, not the SEC, and it covers broker-dealers and their representatives rather than investment advisers (Form ADV filings for advisers go through the IARD). D is incorrect because the CRD and BrokerCheck are not competing systems. BrokerCheck draws directly from CRD records.
The Series 6 exam tests the regulatory architecture of broker-dealer registration. Candidates should know that the CRD is the FINRA-operated back-end and BrokerCheck is its public face. confusing the two, or confusing the CRD with the IARD for investment advisers, is a common trap on questions about how a representative's record is created, updated, and surfaced to the public.
A FINRA-member broker-dealer is onboarding a new registered representative candidate. The firm files Form U4 electronically through the CRD. Which of the following accurately describes what the CRD filing accomplishes?
B is correct. Once the firm submits Form U4 through the CRD, the filing flows to FINRA and to the state securities regulators in the states where the candidate seeks registration. FINRA opens the candidate's testing window so top-off qualification exams (such as the Series 6, Series 7, or Series 24) can be scheduled, and the state regulators are notified of the pending registration. The CRD is designed to coordinate this multi-regulator process through a single electronic filing.
A is incorrect because the SEC does not register individual broker-dealer representatives directly. that is a FINRA-and-state function. C is incorrect because broker-dealer representative registration (Form U4 through the CRD) and investment adviser representative registration (Form U4 through the IARD on the IA side) are separate paths, even though both use a U4 form. D is incorrect because the CRD filing replaces paper state filings. that is the whole point of having a central electronic depository.
The Series 6 exam tests the practical mechanics of how a registered representative gets onboarded. Understanding that a single CRD filing reaches FINRA and the relevant state regulators, opens the testing window, and starts the candidate down the qualification path is essential for any scenario question about hiring or transferring registered representatives.
What concepts relate to CRD (Central Registration Depository)?
This term is part of this cluster :
Where does CRD (Central Registration Depository) appear on the Series 6 exam?
This term is tested in the following FINRA Series 6 topic areas:
Who uses CRD (Central Registration Depository) on the Series 6?
This term is part of the day-to-day workflow for these Series 6 audiences: